SCI Reviews Changes in Iran's Q4 Land, Home, Rent Prices

EghtesadOnline: The Statistical Center of Iran has published a new report on home and land prices, in addition to rents, showing all have increased significantly across the country during the fourth quarter of the last Iranian year (December 22, 2018-March 20).

News ID: ۷۴۷۶۴۵

23 June 2019

According to the report, published on the website of SCI, the average price of each square meter of land (vacant) or land of a rundown residential property (such that only its underlying land is useful for construction) in Iran went up by 121.9% in Q4 compared with the corresponding period of the year before. Prices increased by 36.6% compared with Q3 of fiscal 2018-19.

The minimum price of each square meter of land or land of a rundown property in the country stood at 502,000 rials ($3.7) while the maximum was at 638.4 million rials ($4,746), bringing the average to 28.65 million rials ($213).

The number of land deals made during the last Iranian year’s Q4 increased by 28.6% compared with the similar period of the year before and 18.8% when compared with the third quarter of last year, Financial Tribune reported.

The average area of each dealt land or land of a rundown property in real estate agencies across Iran was set at 264 square meters by SCI.

The report shows the average price of each square meter of residential floor area surged by 59.8% during last year’s Q4 on a year-on-year basis. When compared with the previous quarter, prices indicated a growth of 11.5%.

The minimum price of each square meter of residential floor area across urban areas during last year's Q4 stood at 864,000 rials ($6.4) with a maximum price registered at about 570.98 million rials ($4,245). The average price was about 29.26 million rials ($217).

The number of land deal rose by 28.6% while that of homes and rents declined 16.6% and 15.5% respectively YOY

In terms of the number of deals for residential floor areas, Q4 of the fiscal 2018-19 saw a decline of 16.6% compared with the Q4 of the year before. Against the Q3 of last year, the number of such deals registered an increase of 10.3%.

SCI put the average dealt floor area at 110 square meters while putting the average age of residential units at 11 years.

The Statistical Center of Iran also disclosed figures for monthly home rents plus 3% collateral legally paid to rent one square meter of a residential floor area.

It reported that the average rent prices increased by 19.2% during last year's Q4 compared with the Q4 of the year before while they grew by 1.8% compared with the third quarter of last year.

The minimum price of each square meter of residential floor area rented in Iran stood at 1,818 rials (1.3 cents) with the maximum being registered at 1.71 million ($12.7), bringing the average to 111,064 rials (82.5 cents) per month.

Compared with the fourth quarter of the year before, last year’s rent deals decreased by 15.5% whereas they fell by 13.3% compared with last year’s Q3.

SCI reported the average area of total rent deals at 98 square meters and put the average age of rental homes at 13 years.

All figures reported by SCI employ data extracted from the state-run Tenement Management Information System operated by the Ministry of Roads and Urban Development.

Established with the aim of making home purchase and renting deals more transparent, the system legally requires all certified real estate agencies to register their deals.

In light of the fact that sudden changes in the number of deals in major cities lead to a significant change in prices across a province or the whole country, the report uses a weighted average balance for its reports to identify real price changes by eliminating the effect of home deals.

The related weights used were based on occupied residential units surveyed during a general census conducted in the fiscal 2015-16.